Over 75% of Australia’s $70B AI Data Center Pipeline Lacks Confirmed Power

Over 75% of the 40-plus large data centers planned or under construction in Sydney and Melbourne, representing $70B in projected investment, lack confirmed electricity supply or grid connections. Goodman Group abandoned its proposed A$1.2B, 90-megawatt Project Mars development in Sydney last month following hundreds of local objections regarding its proximity to residential homes and a public school. Over a third of proposed data centers intended for Australia's main grid were canceled last year, while operator Nextdc recently saw its shares nearly halve after local residents successfully blocked transmission line installations. Australia currently has 1.5 gigawatts of operational data center capacity, but the pipeline of announced and early-stage projects has swelled to more than 20 gigawatts. Data centers currently consume roughly 2% of Australia's grid electricity, with projections estimating this load will rise to 6% by 2030 and 13% by 2036. "Data center capacity is being built much faster than the new generation needed to supply it." — Tushna Mehta